The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.

The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes sound financial and economic decisions through community development and education programs.

The Guidelines incorporate important elements of eight already issued FFIEC guidance papers in the areas of Year 2000 project planning, renovation, testing, contingency planning, and the impact of the century date change on customers. They provide the Board of Governors and the other banking agencies with another enforcement tool to address serious Year 2000 deficiencies at the banks, thrifts, and credit unions they supervise. Under section 39 of the FDI Act, the Board may direct a state member bank that is not in compliance with the Guidelines to submit an acceptable corrective action plan or comply with such a plan, without initiating an administrative enforcement proceeding. If the Board finds that a state member bank fails to submit an acceptable plan requested by the Board or fails to comply with a plan that has been deemed acceptable, it can issue, pursuant to section 39, a public "safety and soundness" order requiring the bank to correct the deficiency.

In appropriate circumstances, this Reserve Bank will consider the use of informal and formal enforcement actions to address critical Year 2000 compliance deficiencies at state member banks, including the use of memorandums of understanding, cease and desist orders, and now, with the adoption of the new Guidelines, "safety and soundness" orders issued pursuant to section 39 of the FDI Act.

Note that, in the Federal Register notice, comments on the Guidelines have been invited. Comments should be submitted by December 14, 1998, to the Board of Governors, as specified in the notice.